Honda reveals national drive-away pricing on Civic, Accord, Odyssey, HR-V and CR-V

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Sam JeremicThe West Australian
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A visitor at Honda Motor Co.'s showroom looks into a window of a Honda Accord in Tokyo Tuesday, Jan. 31, 2006. Honda reported a 12 percent drop in profit , but reported booming sales and raised its earnings forecast for the full fiscal year. In a solid sign of growth that offset the lower profit numbers, Honda revised its forecast for the fiscal year through March to a 605 billion yen (US$5.2 billion; euro 4.3 billion) profit, a record high for the company that's better than the 490 billion yen (US$4.2 billion; euro 3.5 billion) projected in October. (AP Photo/Itsuo Inouye)
Camera IconA visitor at Honda Motor Co.'s showroom looks into a window of a Honda Accord in Tokyo Tuesday, Jan. 31, 2006. Honda reported a 12 percent drop in profit , but reported booming sales and raised its earnings forecast for the full fiscal year. In a solid sign of growth that offset the lower profit numbers, Honda revised its forecast for the fiscal year through March to a 605 billion yen (US$5.2 billion; euro 4.3 billion) profit, a record high for the company that's better than the 490 billion yen (US$4.2 billion; euro 3.5 billion) projected in October. (AP Photo/Itsuo Inouye) Credit: AP

Honda Australia has announced drive-away pricing for its entire range when the brand moves to a set-price, haggle-free agency model from July 1.

The company announced last year it would move away from the traditional business model, which sees dealers buy stock from car companies and then on-sell for a profit, in favour of owning all stock in showrooms and using dealers as agents to provide knowledge on the vehicles and be a place for handovers.

It was part of a massive overhaul of its local operations, which also included models being discontinued and some dealers being shuttered.

As part of the new arrangement, all vehicles have a set drive-away price no matter where they are in the country, rather than a manufacturers list price which doesn’t include other charges such as insurance, dealer fees and the like.

The only prices not included are Honda Genuine Accessories chosen by the customers.

When factoring in previous on-road costs, prices to get cars on the road have risen across the board, though not by much; we’d estimate most cost less than $1000 more to drive away than before.

Honda sign
Camera IconHonda sign

Honda Australia director Stephen Collins said many buyers — though not all — would welcome not having to haggle when buying a car.

“All our research shows one of the most common pain points associated with the purchase of a new car is the need to negotiate and haggle on price,” he said.

“Under our new agency model, this will no longer be necessary to determine the price of a new vehicle, which is a significant change for Australians who have been trained to buy new vehicles by negotiation.

“We know this new way of buying a car won’t be for everybody, but we are confident it will address the needs of the vast majority of new car buyers, while delivering a more relational, less transactional experience.”

Honda has also altered its ownership program.

Though still offering a five-year, unlimited kilometre warranty, a vehicle’s first five scheduled services are capped at $125.

This means all vehicles will cost just $625 to service over the course of their new car warranty, with the exception of the Odyssey people mover which is covered for 2.5 years due to having six-month intervals rather than yearly.

When combined with the previously optional, now standard five years of premium roadside assistance, Honda says customers will save more than $2000 on average.

“The new Honda way is focused not just on the purchase experience, but also the ownership experience,” Mr Collins said.

“We want every experience the customer has with the Honda brand, at every touch point, to be simple and straightforward: no complexity, no jargon, just easy and enjoyable.

Honda Australia - Stephen Collins
Camera IconHonda Australia - Stephen Collins

“Every decision by Honda Australia, in reengineering the entire business, has been made with the pursuit of an enhanced customer experience in mind.

Many brands will be watching with interest to see how the new model works, with Mercedes-Benz already locked in to adopting an agency model from early next year.

HONDA AUSTRALIA DRIVE-AWAY PRICING FROM JULY 1, 2021

(compared to June manufacturer’s list price not incl. on road costs)

CIVIC HATCH

VTi-S: $31,000 (+ $4710)

VTi-L: $34,900 (+ $4810)

RS: $39,600 (+ $5510)

ACCORD

VTi-LX (petrol): $57,400 (+ $9410)

VTi-LX (hybrid): $60,400 (+ $9910)

ODYSSEY

Vi L7: $48,700 (+ $4450)

Vi LX7: $56,000 (+ $4850)

HR-V

VTi: $31,300 (+ $4400)

VTi-S: $35,100 (+ $3900)

RS: $38,500 (+ $4000)

VTi-LX: $41,000 (+ $4050)

CR-V

Vi: $35,300 (+ $4810)

VTi: $38,300 (+ $4810)

VTi 7: $40,300 (+ $4810)

VTi X: $41,200 (+ $5210)

VTi L AWD: $45,500 (+ $5010)

VTi L7: $48,700 (+ $5210)

VTi LX AWD: $53,200 (+ $5710)

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